Schertz Considering Property Tax Increase

The city of Schertz this month is a considering a potential property tax increase. The increase, if adopted, would raise the tax rate in Schertz from last year's $0.4843 per $100 of taxable value to either $.04781 or $0.5095 per $100 of taxable value.

During the first of two public hearings to discuss the proposal, several people came out to share their opinions on the pros and cons. The question is an important one. One of the draws of the Schertz-Cibolo area is its comparatively low property tax rate, and residents are concerned not only about the affect of the increase on their tax bills, but also on how it will affect their ability to sell their homes.

As the number one real estate office in Schertz by volume, the Claus Team has a unique level of insight into the workings of the city's sales market. And even though the prospect of increased taxes is never an easy one, the Claus Team supports the increase.

In the past decade, the City of Schertz has grown exponentially. Revenue generated from the increase will significantly impact Schertz's ability to not only continue offering the amenities its residents have come to expect, but also to expand and enhance quality of living in the city. The benefits from the tax increase will more than make up for the hike, which on a personal level, well be slight.

For example, if the increase is passed in its highest form, the effective increase in cost will only be about $75 per year on average.This breaks down to about $6.25 per month. Per person, that is a very small amount that stands to have a great impact on the future of Schertz as a whole.

A second public hearing to consider the proposal will be held at 6 p.m., August 28, 2012 at Council Chambers, City Hall, 1400 Schertz Parkway, Building No. 4, Schertz, Texas. Final voting will be September 11, 2012.

What's you opinion on the increase? We'd love to know your thoughts.

Buyer Quiz: How much do you really know about buying a home?

We were exploring buyer's resources today and stumbled upon this Kiplinger quiz to test real estate buyers and see how much they know about the purchasing process. It asked some really excellent questions and brought up many of the issues buyers' agents can help negotiate and clarify for their clients.

From assistance facilitating mortgage pre-approval to help with making an offer that includes provision for closing cost expenses, the buying process is complex, and bringing a buyer's agent to the table to represent your interests means that you have an expert on your side who understands all the ins and outs of the purchasing process.

Take the a moment and take the QUIZ. And if it sparks any questions, consider calling one of the Claus Team's buyers' agents at 210.566.6474 TODAY!

Pssst...there are also lots of educational resources available for buyers on our website, www.theclausteam.com

Household Debt a Key Factor in Texas Mortgages

According to the Texas A&M Real Estate Center, a Texas real estate buyer making $37,351 annually today can qualify for a 30-year, 80 percent loan in the amount of $150,000. 

Even with favorable interest rates and increased mortgage flexibility, the path to home ownership in Texas may still be a difficult one. In the article Dialing Down Debt: The Road to Recovery Begins at Home, real estate expert Gerald Klassen examines the impact of individual household debt levels on the real estate market. His findings paint a cautionary picture for the mortgage industry, the key to which may be shifting to focus on the deleveraging of debt prior to mortgage approval.

Deleveraging means that households reduce their liabilities by making balloon payments to reduce account balances or liquidate assets to reduce their number of monthly payments. In the past, deleveraging may have been considered a tactic of last resort in pursuing mortgage approval. However, as banks begin to focus more on the viability of mortgage applicants, debt-to-income ratio as a factor for mortgage approval stands to gain in importance.

If you are considering a home purchase, contact the Claus Team by phone at 210.566.6474 and speak to one of our buyers' agents about Texas' debt-to-income ratio requirements and actions you can take to help facilitate approval of your mortgage loan. 

You can also visit us online at www.theclausteam.com and use our mortgage calculator to estimate payments and begin exploring financing options.